Construction is big business in Australia. Because of its sheer size and importance, any weak spots are going to show up in construction first. As they did when the mining boom was critical to economic growth.
Property Market
When you hear about a rising property market, remember it’s not the house rising in value. The house can only depreciate.
It’s the land the house sits on that goes up in value. It’s important to look at the property market from a land perspective. The land around the services and infrastructure most people want to live close to is fixed in supply.
What influences the property market?
The property market is not subject to the same laws of competition. It will sell for the highest prices that the economy can afford to pay for that location value. In other words land will always soak up any of society’s gains.
That’s why here at Markets & Money our property experts keep their fingers on the pulse of Aussie land prices.
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We worked that out years ago. But they’re now focused on creating their own wealth, rather than waiting for the next recession, if indeed if actually happens. It certainly won’t happen this year.
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Dodd Frank had to go; the real estate cycle demanded it. This is history simply repeating before your eyes.
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